Wednesday 10 October 2007

Arithmetic for editors

I imagine that most readers will have read about this:
Alistair Darling announced that he planned to withdraw capital gains tax (CGT) taper relief, under which there are different rates of CGT for different kinds of investment, down to as low as 10 per cent, replacing it with one rate of 18 per cent.
Fairly straightforward - up from 10% to 18%.

But what about this?

From April, there will be no taper relief and all gains will be subject to the 18 per cent rate, meaning entrepreneurs who have built up businesses over their lifetimes and were perhaps looking forward to selling up to fund retirement will find that unless they do it before next April, they will pay 8 per cent more tax than they were expecting to.
No Mr Business Editor. That's 80% more tax.

1 comment:

David Farrer said...

Comment made on previous template:

As a cynic elsewhere has pointed out, there will be a reduction in CGT for those selling "second homes" such as - well, most MPs.

11 October 2007, 12:12:01 GMT+01:00